About a week ago, I did a premium post in which I stated I would be going short the utilities ETF symbol XLU.
The only tweak in that trade was that I declared a stop-loss of 41.60, but as the market kept pushing higher, I gave it a little more wiggle room. I executed the trade by purchasing a large quantity of XLU January 2027 $44 puts, and I added even more to them on Friday, in spite of the XLU continuing to go up.
Well, in spite of the /ES, /NQ, and /RTY blasting higher today, the utilities have finally started behaving themselves.
I am up 14% on the trade already, but with months of life left in these options, I’m simply going to stick with them. I think they have a long way to go!
Comments
Log in or sign up to join the conversation.